Sole Proprietorship Definition
A sole proprietorship is a business that is owned and operated by one person. The owner is responsible for all aspects of the business, including its debts and liabilities. A sole proprietor can operate under their own name or choose to do business using a trade name.
There are several advantages to operating as a sole proprietor, including:
-simple and inexpensive to set up
-all profits go directly to the owner
-owner has complete control over the business
-relatively easy to dissolve
There are also some disadvantages to operating as a sole proprietor, including:
-owner is personally liable for all debts and liabilities of the business
-business may have difficulty securing financing
-ownership can not be transferred to another person
